While outrageous gas prices still have drivers foaming with rage, American legislators are reportedly studying the possibility of introducing a driving tax. The goal? Charge motorists for each kilometre travelled.
The measure, originally recommended by Democrat Ken Conrad, would either replace the 18.4 cent per gallon charge dictated by the government or be tagged onto it.
The tax, described as “feasible” by the Congressional Budget Office (CBO), would help fill the Obama administration’s coffers, as the current collection level isn’t enough to ensure the upkeep of the country’s roads.
In a recent report, CBO stated that “because highway costs are more directly determined by miles driven than by fuel used, appropriately designed [mileage] taxes can do more to improve the efficiency of road use than fuel taxes can”.
Of course, the new tax raises several issues, such as privacy and the way the data would be collected. Some also believe the tax would penalize Americans living in rural States.
Even if the measure is never adopted, it could very well pique the curiosity of many other countries struggling with the upkeep of their roads.
Source : CNN Money
The measure, originally recommended by Democrat Ken Conrad, would either replace the 18.4 cent per gallon charge dictated by the government or be tagged onto it.
The tax, described as “feasible” by the Congressional Budget Office (CBO), would help fill the Obama administration’s coffers, as the current collection level isn’t enough to ensure the upkeep of the country’s roads.
In a recent report, CBO stated that “because highway costs are more directly determined by miles driven than by fuel used, appropriately designed [mileage] taxes can do more to improve the efficiency of road use than fuel taxes can”.
Of course, the new tax raises several issues, such as privacy and the way the data would be collected. Some also believe the tax would penalize Americans living in rural States.
Even if the measure is never adopted, it could very well pique the curiosity of many other countries struggling with the upkeep of their roads.
Source : CNN Money